According to a recent report by realtor.com, potential homebuyers putting off buying a home right now could be losing thousands of dollars by not taking advantage of low interest rates and home prices.
The report examined a scale of details including the long-term financial effects of owning versus renting and the likelihood of monetary gain that renters forfeit when waiting to buy a home. With the depreciation of home prices, rents escalating and higher mortgage rates sneaking back into the scene, potential homebuyers waiting too long to buy could potentially face financial retribution.
Jonathan Smoke, chief economist for realtor.com stated, “Current market conditions give buyers the opportunity to build substantial wealth in the long-term, compared with renters and later buyers, in advance of the projected increase in mortgage rates and continuing price appreciation.”
Smoke went on to say that “The problem is inventory is low, which has many would-be homebuyers — especially first-timers — standing on the sidelines and missing out on potentially material financial gains.”
The report by realtor.com also revealed that at least 88 percent of MSAs buying a home would rake in a financial benefit of $100,000 or more. This is based on today’s dollar amount over a 30-year period.
“It’s important to remember that a home purchase decision is deeply personal. Potential buyers need to consider factors such as upcoming life events, job security and potential relocation, in addition to financial benefits, because they, too, can have a significant impact on ownership,” Smoke said.
Are you a potential homebuyer? How do you feel about the real estate market? Are you more inclined to purchase a home after reading this information?